Packaging Automation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Packaging Automation Market Analysis

The packaging automation market is projected to register a CAGR of 7.81% during the forecast period (2022-2027). Over the last few decades, production lines worldwide have undergone a significant transformation with the advent of automation and robotics. High levels of competition and growing focus on reducing the turnaround time have prompted manufacturers worldwide toward automation to retain high levels throughout and efficiency.

• The demand for global packaging automation solutions industry is driven by the increase in the rate of industrialization & manufacturing activities due to the growing population, reduction in the labor cost as automated packaging requires fewer manual inputs, and a rise in industries using this solution, including food & beverage, healthcare & pharmaceuticals, and e-commerce & logistics industry, and others.
• The industries are focusing on gaining a higher cost realization by achieving higher efficiency and cost reduction in the overall operation. Labor wage is one of the large chunks of expense for any manufacturer. The trend toward less staff per line has been driving the need for intuitive control units, such as Human & Machines (HMI), to Interact with multi-touch. Hence, by adopting packaging automation systems, manufacturers gain efficient and cost-effective packaging solutions.
• Additionally, to promote packaging automation among end users industries, packaging machinery manufacturers are launching schemes with their machinery. For instance, in Aug 2022, Maxpack Machinery LLC launched Leap by Max pack, revolutionary packaging machinery which allows the buyer to pay over time. Leap is Maxpack's take on the high-growth segment of Buy Now, Pay Later. The automation machinery is sold as premium bundles with a payment duration of 18 monthly payments with no interests, no guarantees, and no credit requirements.
• Decarbonization continues to be a major trend in nearly every industry. Reducing energy consumption is a very high priority for packaging companies, and CPG (Consumer Packaged Goods) manufacturers are searching for better ways to control energy use in their facilities. As a result, many are outfitting the new machines and retrofitting existing machines with airflow sensors.
• However, the advantages of adopting the packaging automation systems are significant and drive the market. Still, the requirement of higher initial capital restricts smaller organizations from adopting further amidst the pandemic.
• The COVID-19 pandemic is forcing the players in the packaging industry to rethink existing business models. The increase in e-commerce does not put a strain on distribution companies but also on manufacturers. Manufacturers are also putting their money and efforts into packaging that goes with the product they produce. Additionally, COVID accelerated the adoption of robotic packaging automation processes like the wrap around packaging.

Packaging Automation Industry Segments

Packaging Automation refers to the procedure of packaging a product without the need for human assistance. Packaging Automation applications range from individual equipment to complete packaging lines. The study's scope for the packaging automation market is limited to hardware solutions for different applications in a wide range of industries globally. Software solutions and after-sales servicing are not considered for market estimation.

The Packaging Automation Market is segmented by Product Type (Filling, Labelling, Case Packaging, Bagging, Palletizing, Capping, Wrapping), End-user (Food, Beverage, Pharmaceuticals, Personal Care And Toiletries, Industrial & Chemicals), and Geography.

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Packaging Automation Market Trends

This section covers the major market trends shaping the Packaging Automation Market according to our research experts:

Pharmaceutical Industry to Show Significant Growth

• The pharmaceutical industry has been undergoing massive changes due to covid 19, and various technological advancements have occurred. The industry has adopted digitized supply chain management solutions driven by critical factors increasing the value and complexity of the supply chain ecosystem. For instance, the rise of novel techniques for vaccines and biologics requires specific materials and temperature conditions for proper packing and transport, and visibility and transparency are needed.
• According to PMMI, The Association for Packaging and Processing Technologies, the pharmaceutical industry is undergoing a fundamental shift in product formats with the growth of injectables and customized medicines, requiring manufacturers to rethink their production and packaging strategies. Manufacturers are looking to use the potential of digitized data to drive efficiency improvements throughout operations.
• A recent study by FDANews stated that around 80% of the deviations observed could be attributed to human error. Also, in the United States, 90% of the prescriptions have generic drugs but only generate 28% of the pharmaceutical revenue, resulting in an increasing demand for small-batch production. Consistent quality, even for small batch production, can be achieved with packaging automation.
• The adoption of industry 4.0 in the pharmaceutical industry has shown significant growth. Its ability for continuous process control for all the operations, including packaging, provides analytical insights, helps draw quicker decisions where attention is needed and reduces human interventions. Also, the increasing packaging complications and rigid government norms are anticipated to promote growth for the market, especially in the pharmaceutical sector. This, in turn, is affected by the increase in pharmaceutical sales globally. Pharmaceutical sale in North America and Europe is projected to reach USD 706 billion and 296 Billion in 2025. (Source - AstraZeneca PLC)
• Further, with the decreasing cost of robotics systems such as parallel robots, and arms robots, pharmaceutical companies are starting to accept the fiscal advantages of robotics components over obsolete equipment as they offer automation with sustainability and flexibility.

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